Feb’15 Inflation down to another record low

Pakistan Economy: The Pakistan Bureau of Statistics (PBS) yesterday released the latest data on Consumer Price Index (CPI) which showed that owing to reduction in petroleum prices, lower transport fares, and stable food prices, the inflation came to a record 11-year low in February’15. According to the data, the CPI had reduced to 3.2% YoY in February’15 versus 3.9% YoY in January’15 and 7.9% YoY in February’14. Primarily due to lower transport fares, the CPI fell by 0.9% in February’15 versus a fall of 0.3% in February’14 and a rise of 0.1% in January’15. The 11% decline in transport fares gave a major hit to the inflation to come down to 11 year low in February’15. The transport fares fell primarily owing to intense decline in the international crude oil prices since last few months coming down to below $60 per barrel to more than five years low. Food & Non-alcoholic beverages which have a major chunk of 34.83% in the inflation pie rose slightly by 1.2% YoY in February’15.

CPI eases to 5.45% in 8MFY15: On back of significant decline in petroleum product prices, better supplies and higher base effect, the cumulative CPI also remained low growing by 5.45% in 8MFY15 which is much low when compared to a cumulative CPI inflation of 8.65% in 8MFY14. The Sensitive Price Index (SPI) and Wholesale Price Index (WPI) hike by 2.77% YoY and 0.87% YoY respectively in 8MFY15. The Core inflation measured by non-food non-energy grew by 6.2% in February’15 versus 7.8% in February’14 and 6.4% in January’15.